Armada Company has these comparative balance sheet data:
|
ARMADA COMPANY |
||
|
2010 |
2009 |
|
|
Cash |
$ 25,000 |
$ 30,000 |
|
Receivables (net) |
65,000 |
60,000 |
|
Inventories |
60,000 |
50,000 |
|
Plant assets (net) |
200,000 |
180,000 |
|
$350,000 |
$320,000 |
|
|
Accounts payable |
$ 50,000 |
$ 60,000 |
|
Mortgage payable (15%) |
100,000 |
100,000 |
|
Common stock, $10 par |
140,000 |
120,000 |
|
Retained earnings |
60,000 |
40,000 |
|
$350,000 |
$320,000 |
Additional information for 2010:
1. Net income was $25,000.
2. Sales on account were $375,000. Sales returns and allowances amounted to $25,000.
3. Cost of goods sold was $198,000.
4. Net cash provided by operating activities was $48,000.
5. Capital expenditures were $25,000, and cash dividends were $18,000.
Instructions
Compute the following ratios at December 31, 2010.
(a) Current.
(b) Receivables turnover.
(c) Average collection period.
(d) Inventory turnover.
(e) Days in inventory.
(f ) Cash debt coverage.
(g) Current cash debt coverage.
(h) Free cash flow.